Your gas price bill to rise? What Narendra Modi govt may well do soon
India imports half of its gas which costs more than double the domestic rate. The USD 3.06 per mmBtu rate would be for six months beginning April 1 and will be the highest since April-September 2016 when a similar price was paid to domestic producers. The increase in price will boost earnings of producers like Oil and Natural Gas Corp (ONGC) and Reliance Industries but will also lead to a rise in CNG price, which uses natural gas as input. It would also lead to higher cost of urea and power production.
The hike will boost producers like ONGC. Every dollar increase in gas price results in Rs 4,000 crore additional revenue for the PSU on an annual basis. Image source: Reuters